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How to report a coronavirus-related 401k withdrawal after moving to a new State?

I took a coronavirus-related distribution from my 401k in 2020 while living in Oregon. I then moved to another state (NY) during the same tax year (2020).

I am paying the Federal tax on this dist. over 3 years, but I paid the State tax in full on my 2020 Oregon return. How, then, do I communicate to the State in which I currently live (NY) that I've already paid the State tax on that portion of my Federal AGI?

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6 Replies

How to report a coronavirus-related 401k withdrawal after moving to a new State?

whatever amount of tax you paid to Oregon for 2020 cannot assist you with tax due to NY for 2021.

BUT

if you did not split your distribution in 3.0 for Oregon, there is nothing to report on your 2021 NY state tax return.

 

How to report a coronavirus-related 401k withdrawal after moving to a new State?

I did not split the distribution in Oregon by 3 (that was not an option).

Does this mean that I should simply omit / subtract the 401k distribution when reporting my Federal AGI to NY State?

AmyC
Expert Alumni

How to report a coronavirus-related 401k withdrawal after moving to a new State?

OR and NY both begin with the federal AGI. Please review your OR return from last year to make sure that you added the additional income. Unless you specifically added the income, it was not taxed. 

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How to report a coronavirus-related 401k withdrawal after moving to a new State?

The 401k income was reported in full on the OR 2020 return.

It's being reported by 1/3 each on the Federal 2020, 2021, 2022 returns (as allowed by the CARES Act).

 

So the problem then is I've got this rather large 401k distribution as part of my Federal AGI this year (and next) that I'm importing to my NY State return, but NY's tax form does not appear to provide a clear-cut way to exempt the distribution portion of my income from taxation (since I paid the tax on it in Oregon last year).

Is there a creative work-around that can be used to get this amount reported to NY without being taxed on it a 2nd time?

Any suggestions would be much appreciated.  I am desperate for ideas.

How to report a coronavirus-related 401k withdrawal after moving to a new State?

@Hadar 

Are you sure this is a real problem?

I thought TurboTax has not added support for Form 8915-F yet .

 

------brute force:

 remove NY state return 

e-file federal  (you can't do this if Form 8915-F is not supported yet).

override 1040 5b to subtract 2020 distribution.

redo NY state return.

If unable to e-File state of NY you'll have to file NY return on paper.

How to report a coronavirus-related 401k withdrawal after moving to a new State?

Yes, that's a good point.  The 8915 form is not ready, so I can't work through this in TurboTax yet.

I was looking at the NY paper forms in advance to see how to do this, and couldn't figure it out, so I am anticipating trouble when doing this in Turbo eventually.

 

I may re-submit my question when 8915-f is available for e-file.

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